Is AIG Insurance Safe?
by Efin Advisor | September 26, 2008
Given the recent and adverse news coverage regarding American International Group Inc. (AIG), and the fact that AIG is one of many companies which Efinancial allows to compete for your business, we wanted to take this opportunity to proactively address questions regarding an American General Life Insurance Company policy obtained through Efinancial.
Insurance is a highly regulated industry. All insurance companies doing business in the United States are regulated by state law, and required to maintain enough capital and surplus to satisfy their obligations to their policyholders. Although various companies owned by AIG are part of a larger insurance holding company system, each company is individually responsible for the liabilities associated with the business that it sells.
Consistent with those responsibilities, American General Life is well capitalized to meet or exceed local regulatory capital requirements and fully committed to meeting the needs of their policyholders across the U.S.
The National Association of Insurance Commissioners (NAIC) released this statement to the press recently: “We have a very strong message for consumers: If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims”.
We hope this helps clarify the current situation and provides greater assurance if you have made a decision to secure quality term life insurance from American General Life.
Glad to hear this company will be alright. I’ve got a policy with another company but I know people who are with AIG and I couldn’t imagine anything worse than the state of the economy ruining their insurance policies. For those who are unaware, insurance is a HUGE hassle, even for people who are well acquainted with finance and law, and I would imagine that many people aren’t even routinely aware about whether their current policies are safe. It’s a terrible shame that AIG is so unstable right now, but I’m glad they’ll be able to carry out their policies as normal while they endure this crisis.
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